Etihad airways has cancelled an order for 10 Airbus A320neo aircraft as part of its cost cutting measure.
In 2013, Etihad placed an order for 10 A320neos and 26 A321neos, along with 100 other Airbus and Boeing aircraft, which were scheduled to begin delivery in 2018.
Due to its financial status, the airline decided to cancel 10 A320neos on order, but to keep the remaining orders intact. Etihad ordered these planes for Air Serbia in which it had invested. These A320neos were intended to replace Air Serbia’s ageing A319s and A320s. The cancellation leaves Air Serbia with no new planes on order.
Over the last two years, Etihad has racked up losses of more than $3.5bn and seen more than 4,000 employees depart in the last 18 months.
The airline currently operate 109 aircraft and has 159 more planes on order.